Correlation in BlazeMeter scripting is handled through the Correlation Rules feature. This tool automatically identifies and replaces dynamic values in your script, reducing manual correlation effort. To use it, you first record a test scenario. Then, navigate to the ‘Script’ section and select ‘Correlation’. Click on ‘Add Rule’, input the variable name, left and right boundaries, and choose whether to apply the rule globally or only once. The system will then replace all instances of the identified dynamic value with the specified variable.